Protecting finances and long-term security during a divorce

When people decide to get divorced in Tennessee, one of the major hurdles they will face is separating their finances, reassessing retirement accounts and benefits, and reestablishing financial independence. Individuals who take a proactive approach to getting their finances in order and modifying their spending habits to reflect their relationship changes, will most likely face a much more successful financial future than those who do not.

One of the most important pieces of advice for anyone to heed when they are going through a divorce is to keep the financial details of their situation private. Maintaining confidentiality will enable them to make important decisions without the judgment of others. When a couple knows their marriage is ending, they should close any shared banking accounts and open individual accounts. The sooner they begin to separate their finances, the sooner they can get on the road to rebuilding independence.

Budgeting is another critical step for divorcing couples to take. They should assess their current needs and decide if there are expenditures that can be reduced to save money. Along with this, they should regularly track all of their spending and be aware of where their money is going. Filing receipts of important purchases away is important because it may be needed as a reference in court proceedings.

A legal professional has the experience to provide insight about how to work through the divorce process in a way that is effective and efficient.

Source: USA Today, “Getting a divorce? Here are 20 tips for maintaining financial sanity,” Josh Smith, May 30, 2018